PowerOptions RFP for Renewable Energy PPA

PowerOptions is currently seeking a renewable energy partner for its new Wholesale Renewable Energy PPA program. To get a copy of the Request for Proposals (RFP), please email PPA@poweroptions.org. If you have any questions, please contact Brian Tracey at 617-737-8480.

Questions and Answers:
PowerOptions will post any and all questions we receive during the bidders conference call or otherwise. Below is a list of the questions we have received to date, with the official answers. Please send any subsequent questions to PPA@poweroptions.org. Deadline for written questions is Wednesday, October 14, 2015.

Questions from the bidders’ call

What is the credit rating of the Buyers?

Response: Specific credit information for the buyers described in the RFQ is as noted. More detailed information about potential buyers will be available during contract negotiations. The program agreement between PowerOptions and the successful proposer will establish credit parameters and required criteria for PowerOptions members to participate in the program.

Will this program provide energy on a unit-contingent basis via PPA without regard to serving base load?

Response: Yes.

The RFP states that the desired minimum capacity is 10MW with an annual production estimate of 12,250 MWh. Is there a maximum that you would consider?

Reponse: 10 MW is the minimum capacity required by the Boston Green Ribbon Commission’s Renewable Energy Leadership Prize. PowerOptions prefers a proposal that offers a minimum of 10 MW, but will consider proposals that offer less. There is no maximum program size. PowerOptions expects more participation than what is presented in the RFQ, thus we are looking for a size greater than the amounts presented in the RFQ.

With respect to eligibility for the Green Ribbon Prize – do all 10 MW have to be new, or can this threshold be met through a combination of new and existing generation?

Reponse: PowerOptions will consider all proposals put forth to deliver renewable energy to PowerOptions members, but eligibility for the Green Ribbon Prize requires 10 MW of new generation.

Questions received via email

Can you clarify the meaning and purpose of section 2(a)(i). Specifically, the clause “When the LMP at the delivery point is less than $0.00 per MWH….” through the end of the paragraph. What is the rationale for this credit?

Response: The rationale for this language is to assure that PowerOptions members pay no more than the agreed upon PPA price. If the LMP is <0, then LSE will get charged for this cost, so the credit will make the customer whole when the LSE passes this cost to PO members.

Is there a specific deadline to reach commercial operations for new resources?

Response: Because the nature of the RFP invites different permutations or options for consideration, it is difficult to definitively say a particular timeline is preferable, for example, if a project with a longer timeline has better pricing then it may be a more preferable project.

Can bid prices be conditioned upon PTC availability? Would this require an alternative proposal?

Response: Yes, the pricing provided can be conditioned on PTC availability. It is suggested that a proposer provide pricing with and without the PTC availability.

Will there be a short list process or just a winner selected? What is the date for selecting winning bids?

Response: We expect there will be a short list process from this RFP effort. We cannot provide a winning bid selection date at this time, but we may submit an application on December 1 to the Boston Green Commission which requires selection of a winning bidder at a minimum. Further progress including the LOI/Term Sheet execution with the winning bidder would be preferred.

Section 2 (f) of the RFP discusses “interactions with LSE”. Can you clarify what exactly you are looking for a supplier to do beyond delivery of the power to a node on the bulk power system?

Response: Per RFP section 2 (f), we are looking for a proposer that has the ability to deliver the power to an ISO-NE node on the bulk power system. The Proposer should explain demonstrated ISO-NE Multi Settlement System (MSS) account usage or other control area experience in dealing with LSEs in the fashion envisioned in this RFP.

Is there any online or start date requirement for the project offering the PPA?

Response: Because the nature of the RFP invites different permutations or options for consideration, it is difficult to definitively say a particular timeline is preferable, for example, if a project with a longer timeline has better pricing then it may be a more preferable project.

How do you envision handling the potential expiration of the Production Tax Credit? Will the buyer take any PTC extension contingencies?

Response: Yes, the pricing provided can be conditioned on PTC availability. It is suggested that a proposer provide pricing with and without the PTC availability.

Section 3 (b) of the RFP states that a security deposit will be required – what is the method for calculating a security deposit and when will it be due?

Response: The amount of the Security Deposit required will be determined based on an assessment of the risks and benefits provided by the long-term contract. Project and Performance Security is not required to be posted with Initial Proposals, but Initial Proposals should include evidence of a bidder’s intent and ability to fulfill the Project and Performance Security Requirements should the proposal be selected as the selected bidder will need to post Security. PowerOptions will establish the structure and amount of the Project and Performance Security at the time a Final Proposal has been selected.

Can you please clarify how confidential information will be treated?

Response: Any and all responses to the RFP are kept confidential. Only members of the review team will have access and members of the team that are not PowerOptions staff will sign Non-disclosure Agreements.